Target Stock News

Three headlines in rapid succession this month have shifted the conversation around shop-in-shop strategy: the Target x Ulta split, Claire's bankruptcy, and the Best Buy × IKEA launch. Together, they mark a turning point for the model, away from blanket expansion and toward disciplined, results-driven partnerships.

Ulta Beauty and Target just announced they won't renew their five-year partnership after reaching 600 Ulta-Target shop-in-shops, falling short of their original goal of 800 locations. With the partnership ending in August 2026, Target's got a year to prepare to dismantle the Ulta in-store concessions, which can span up to 1,000 square feet, and repurpose the space.

BofA analysts downgrade Target, saying the retailer is “underperforming peers on sales, digital growth, and investments.”

Can Target turn it around?

Target and Ulta Beauty said Thursday (Aug. 14) that they have mutually agreed not to renew their shop-in-shop partnership when the current agreement expires in August 2026.  The Ulta Beauty at Target experience, which offers access to beauty products and lets customers link their Ulta Beauty Rewards and Target Circle accounts, will continue in Target stores and on Target.

Retail giant Target Corp (TGT) is in the news today, after reports that the company will end its shop-in-shop partnership with Ulta Beauty (ULTA) in 2026. TGT is falling in response, last seen down 1.5% to trade at $103.83, though recent support at the $100 level remains below.

Ulta Beauty and Target said Thursday that they have decided to end a deal that opened makeup and beauty shops in hundreds of Target's stores next year. Through the partnership, Target opened more than 600 Ulta shops inside of its stores, according to a Target spokesperson.

The past several months have been bullish ones for the market. But not for every stock.